Brokers PI Initiative – British Insurance Brokers' Association https://www.biba.org.uk The British Insurance Brokers' Association is the UK's leading general insurance intermediary organisation Wed, 13 Dec 2017 16:30:43 +0000 en-US hourly 1 https://wordpress.org/?v=4.8.4 BIBA mini guide to preventing under-insurance https://www.biba.org.uk/publication/biba-mini-guide-preventing-insurance/ Tue, 17 May 2016 08:29:20 +0000 https://www.biba.org.uk/?post_type=publication&p=24476 The post BIBA mini guide to preventing under-insurance appeared first on British Insurance Brokers' Association.

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Professional Indemnity Volume 6 Managing under-insurance A Guide to Prevention https://www.biba.org.uk/publication/professional-indemnity-volume-6-managing-insurance-guide-prevention/ Tue, 03 May 2016 12:13:24 +0000 https://www.biba.org.uk/?post_type=publication&p=24381 The post Professional Indemnity Volume 6 Managing under-insurance A Guide to Prevention appeared first on British Insurance Brokers' Association.

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PI Initiative – Volume 5 https://www.biba.org.uk/publication/pi-initiative-volume-5/ Mon, 04 Jan 2016 16:55:07 +0000 https://www.biba.org.uk/?post_type=publication&p=23044 The post PI Initiative – Volume 5 appeared first on British Insurance Brokers' Association.

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Solicitors’ professional indemnity insurance – Ensuring a positive renewal in 2011 https://www.biba.org.uk/publication/solicitors-professional-indemnity-insurance-ensuring-a-positive-renewal-in-2011/ Tue, 23 Aug 2011 23:00:00 +0000 https://www.biba.org.uk/publication/solicitors-professional-indemnity-insurance-ensuring-a-positive-renewal-in-2011/ Over the last couple of years there has been considerable disquiet about the way that renewals for many black and minority ethnic (BME) solicitors' firms

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Over the last couple of years there has been considerable disquiet about the way that renewals for many black and minority ethnic (BME) solicitors' firms has been handled by insurers and brokers.  The Association of British Insurers (ABI) and the British Insurance Brokers Association (BIBA) have both been engaged in discussions with the SRA, The Law Society, the Equality and Human Rights Commission, and the FSA to examine what has happened and to ensure that there is no unlawful discrimination in either the processes or the decisions made by insurers and brokers.

This note aims to provide some basic guidance about avoiding unlawful discrimination, and accompanies the guidance notes to the Equality Act 2010, which will be published shortly by ABI. 

General Guidance for insurers and brokers

The relevant laws for Insurers and brokers on discrimination are most particularly Sections 9 (race) and 29 (provision of services and public functions) of the Equality Act 2010.

These are requirements not to directly discriminate, and that any indirect discrimination must be justifiable.

Sensitivities include the particular needs of different ethnic groups and there should be processes in place to deal with questions and complaints.

What insurers can do

• Help make proposers aware of the market conditions that have influenced your current underwriting strategy
• Use all reasonable endeavors to design proposal forms that are clearly worded, leaving no room for misunderstanding
• Communicate your decisions as clearly as possible
• Communicate your decisions without undue delay
• Avoid using language that may be seen as inflammatory or discriminatory
• Be understanding and straightforward with all solicitors who approach you and work with brokers to communicate in a clear, fair and not misleading manner

What brokers can do

• Where appropriate explain to proposers to make them aware of current market conditions, what has led to them, including the recent claims environment, the problems associated with the Assigned Risks Pool, and the lack of change to the minimum terms for 2011
• Work with the proposers so that as far as is reasonably possible proposal forms are completed comprehensively and correctly
• Impress on customers the benefits of early submission of proposal forms and the risks associated with late submission
• Use reasonable endeavors to notify customers of Insurer's decisions promptly and that the reasons are communicated directly
• If appropriate help your proposer to understand how strong risk assessment and management procedures in their firm can help them to demonstrate to an insurer that they are a good risk.

For more information please contact:

Graeme Trudgill
Executive Director
020 7397 0218
trudgillg@biba.org.uk

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PI Policy Wordings Guide_Accredited Brokers https://www.biba.org.uk/publication/pi-policy-wordings-guide_accredited-brokers/ Mon, 15 Aug 2011 23:00:00 +0000 https://www.biba.org.uk/publication/pi-policy-wordings-guide_accredited-brokers/ Accredited Brokers BIBA Accredited Brokers have the skill to serve you better than you can serve yourself. BIBA strongly recommends its members to take advantage

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Accredited Brokers

BIBA Accredited Brokers have the skill to serve you better than you can serve yourself. BIBA strongly recommends its members to take advantage of their specialist knowledge and experience.

  • BIBA has reviewed the PI cover available in the market in conjunction with the Accredited brokers and this has already raised the standard of cover being offered.
  • The BIBA PI initiative has also increased the competitiveness of PI cover for members.
  • The Accredited Brokers, between them, represent all the leading PI insurers offering PI fro Brokers.
  • The Accredited brokers have a special knowledge of PI insurance and the skills required to negotiate the best available cover for BIBA members.
  • The relationship between the Accredited brokers and their selected insurers will offer the best available resources and negotiating skills in the event of a claim.
  • BIBA now has a panel of experts to handle disputes or conflicts for members.

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New BIBA PI Guide Available now https://www.biba.org.uk/publication/new-biba-pi-guide-available-now/ Mon, 27 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/new-biba-pi-guide-available-now/ New BIBA PI Guide Available now Click here for BIBA Professional Indemnity publication on facts on limitations of liability For further information please contact Graeme

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New BIBA PI Guide Available now

Click here for BIBA Professional Indemnity publication on facts on limitations of liability

For further information please contact

Graeme Trudgill
Executive Director
Tel: 020 7397 0218
Email: trudgillg@biba.org.uk

 

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Lockton – BIBA PI Facility https://www.biba.org.uk/publication/lockton-biba-pi-facility/ Mon, 27 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/lockton-biba-pi-facility/   As a BIBA member you have access to Lockton’s dedicated professional services team, who have been a BIBA recommended Professional Indemnity Insurance provider for

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As a BIBA member you have access to Lockton’s dedicated professional services team, who have been a BIBA recommended Professional Indemnity Insurance provider for 25 years.

Whether you are an established firm or just starting out our dedicated professional services team will find the right solution to match your business needs. Each risk is evaluated on its merits and you will benefit from a bespoke solution provided by our numerous and in some instances exclusive relationships with insurers.

A guide to our products and services

Professional indemnity and errors & omissions insurance, protects you against:

• Loss of reputational damage;
• legal liabilities;
• legal costs and expenses incurred during an investigation and;
• the cost incurred from defence of claims.

Our team will:

• Access your business and tailor a solution for your business needs;
• allocate you a dedicated account manager;
• use our relationships with A rated insures and underwriters to get you right cover at the best price and;
• deliver a global solution if required.

To view the proposal form click here.  Please return the completed form by post to Kevin Bell, Vice President, Lockton Companies LLP, 2nd Floor, North Quay, Temple Back, Bristol, BS1 6FL or alternatively email to insure@uk.lockton.com or fax to 0117 906 5099

 

 

Click here to print this page

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Towergate Underwriting Group Ltd – BIBA PI Facility https://www.biba.org.uk/publication/towergate-underwriting-group-ltd-biba-pi-facility/ Mon, 27 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/towergate-underwriting-group-ltd-biba-pi-facility/   Alan Eyre Managing Director at Towergate PI, says “We are very pleased to receive this accreditation from BIBA and look forward to working closely

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Alan Eyre Managing Director at Towergate PI, says “We are very pleased to receive this accreditation from BIBA and look forward to working closely with BIBA to develop a range of new initiatives for Members”.

• Specialist PI Division of Towergate Underwriting Group Ltd.

• Acting for a number of professional institutions, Towergate PI provides highly specialised risk services to professional advisers in construction, finance and the law.

• Working closely with key markets to develop Scheme arrangements to fully meet the requirements of BIBA members.

• Technical and risk management services focusing on FSA compliance.

• Claims management and support from dedicated claims unit.

• Access our proposal form at : www.towergateprofessionalindemnity.co.uk

 

Click here for BIBA Professional Indemnity Initiative Volume 5 – An Essential Guide to PI risk for general insurance staff

Click here to download the email to members – Jan 06

For further information, please contact:

Neil Hogg
Towergate Professional Indemnity
Suite 4B
1 Portland Street
Manchester
M1 3BE
e-mail: neil.hogg@towergate.co.uk
Tel: 0844 892 1789 Fax: 0844 892 1796
Website: www.towergateprofessionalindemnity.co.uk

Towergate Professional Indemnity is part of Towergate Underwriting Group Limited
Authorised and regulated by the Financial Services Agency

Towergate PI – key people and contact details :

Alan Eyre
Managing Director
email: alan.eyre@towergate.co.uk

Specialised in Professional Indemnity Insurance for over 20 years mainly in the fields of construction, property and law. Currently a member of the DTI Steering Group addressing the use of IT in the Construction industry.

Hilary Nicholls
Technical Support/Special Projects.
email: hilary.nicholls@towergate.co.uk

Previously partner Davies Wallis Foyster specialising in professional indemnity and insurance. Joined TFPI in March 2004 to edit the newsletter and other projects.

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Latest News Howden appointed to BIBA Panel https://www.biba.org.uk/publication/latest-news-howden-appointed-to-biba-panel/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/latest-news-howden-appointed-to-biba-panel/ Howden Insurance Brokers Limited – BIBA professional Indemnity Facility Howden, winner of the British Insurance Awards ‘Insurance Broker of the Year 2011’, have created a

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Howden Insurance Brokers Limited – BIBA professional Indemnity Facility

Howden, winner of the British Insurance Awards ‘Insurance Broker of the Year 2011’, have created a bespoke product specifically for Insurance Brokers.  Backed by Zurich our scheme caters for a broad range of firms from start-ups to large Lloyds brokers. 

The Howden Product:

  • Innocent non disclosure;
  • Special proceedings cover for regulatory investigations;
  • Defence costs cover for actions brought against Approved Persons;
  • Fidelity and Dishonesty cover;
  • Automatic Acquisition Cover;
  • A reduction in the excess by 50% for claims settled by mediation;
  • 15 months cover for the price of 12 for start-ups;
  • Low minimum premiums for smaller firms;
  • Free of charge legal advice from Legal Assistance Direct on a range of matters from employment law to divorce and probate.   

As well as having the right policy in place we aim to offer exceptional service levels, especially in the event that your firm is the subject of a claim. 

We are one of a declining number of Insurance Brokers to maintain an in house Claims team, which is based in our London office alongside your BIBA client service team.  Their role is to act on clients’ behalves to ensure that matters are settled in an efficient, commercial and financially viable manner.   We view our claims service as adding significant value and we work very closely with our clients to establish how best to present claims to insurers in order to ensure maximum cover is received from the policy.  The team, of twelve, is lead by Mike Fraser who has 19 years’ experience and Mike is supported by a team of three Associate Directors who have combined claims handling experience of over 75 years.   

What our clients say

“It made a refreshing change to deal with a firm that took time to explain the products on offer and who ensure that the cover suits our particular needs.  Since we have been dealing with Howden, I have been impressed with the speed of their service and the professional manner with which they have dealt with our enquiries”

Nick Hollands, Finance Director Coversure Insurance Services

“Howden has been our broker since we commenced trading in 2003.  They continue to be our broker of choice because of the consistency and reliability of their customer service, including, but not limited to, their timely reminders at renewal, their prompt policy production and competitive product (both in rate and terms).  They are also timely and prompt in responding to any mid-year changes that we may require and at all times are a genuine pleasure to deal with.”

Sian Watson, Legal & Compliance Director, SSL Insurance Holdings

Click here for BIBA Professional Indemnity Initiative Volume 5 – An Essential Guide to PI risk for general insurance staff

Click here for Howden document 

Click here for proprosal form for insurance intermediaries
 

Contact:         Mike Eld or Matt Baker
Email:            meld@howdengroup.com or mbaker@howdengroup.com
Tel:                 020 7648 7195 or  020 7648 7390
Address:       Bevis Marks House, Bevis Marks, London, EC3A 7JB
Website:        www.howdengroup.com/biba

 

Click here to print this page

 

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PI Initiative Publication https://www.biba.org.uk/publication/pi-initiative-publication/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/pi-initiative-publication/ PI Initiative Publication Click here for the BIBA introductory guide to Professional Indemnity insurance Click here for the BIBA introductory guide to professional indemnity policy

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PI Initiative Publication

Click here for the BIBA introductory guide to Professional Indemnity insurance

Click here for the BIBA introductory guide to professional indemnity policy wordings

Click here for BIBA guide to a broker’s management of PI risks

Click here for BIBA PI market analysis

Click here for BIBA Professional Indemnity publication on facts on limitations of liability

Click here for BIBA Professional Indemnity Initiative Volume 5.2 updated – A Guide to Professional Indemnity Risk Management for General Insurance Broker Staff

 

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PI Policy Wording Guide https://www.biba.org.uk/publication/pi-policy-wording-guide/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/pi-policy-wording-guide/ Broker's PI Initiative PI Policy Wordings Guide The BIBA Guide to Professional Indemnity Policies assists members in understanding the complexities of modern PI insurance with

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Broker's PI Initiative

PI Policy Wordings Guide

The BIBA Guide to Professional Indemnity Policies assists members in understanding the complexities of modern PI insurance with the primary purpose of enabling members to be more secure in the knowledge that their PI policy will serve its intended purpose in the event of a claim.The Guide helps members to meet their own demands, needs and expectations and to appreciate the contractual obligations that are a pre-requisite to claiming indemnity.

The Guide includes:

  • Useful tips
  • Explanation of key policy clauses
  • Explanation of claims obligations
  • Common exclusions to cover
  • buyers check list

PI insurance is becoming increasingly complex and contains strict obligations on the Insured which, if not fulfilled, can result in loss of cover. In today's regulated trading environment that is a risk that the BIBA member cannot afford.

Price – PI insurance is often bought on price alone it being difficult to distinguish between policies on offer the in market by any other means. The Guide will help you to assess and measure the value of the policy by explaining the differences between policies on offer.

Broker/Authorised Insurance Intermediary

For the purposes of this Guide the term "broker" is used throughout and is intended to mean broker or Authorised Insurance Intermediary.

Contents Page

Introduction
How to use the Guide
Don't Attempt DIY PI
Accredited Brokers

Part 1

The Issues
Assessing the Risk
Claims

Part 2 – Examines the typical component of a PI policy wording

The Policy Framework
The Proposal Form
Preamble
Insuring Clauses
Exclusions
General Conditions
Claim Conditions
Excess and Related Clauses
Endorsements and Extensions
Definitions
Schedule
Layering of Policies
Reinstatements
FSA Regulation
Professional Indemnity Buyers Checklist
Appendix 1

Click here to View full Policy Wording Guide

Click here to view an introductory guide to professional indemnity policy wordings

 

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PI Press Release https://www.biba.org.uk/publication/pi-press-release/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/pi-press-release/ PI Press releases 11 May 11 BIBA renews accredited PI broker panel   12 April 10 Important BIBA legal opinion clarifies limitation of liability practice

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PI Press releases

 

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Claims Advocacy Service https://www.biba.org.uk/publication/claims-advocacy-service/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/claims-advocacy-service/ Claims Advocacy Service Free initial consultations for BIBA members on difficult, disputed or rejected insurance claims BIBA is pleased to offer members a specialist claims advocacy

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Claims Advocacy Service

Free initial consultations for BIBA members on difficult, disputed or rejected insurance claims

BIBA is pleased to offer members a specialist claims advocacy service in conjunction with trusted insurance claims advocates, Flaxmans.

If you or your clients are experiencing problems with a rejected, disputed or difficult claim or any other matter relating to your or your clients’ insurance, you can now access our advisers for an initial consultation free of charge.

Problems with insurance claims can occur at any time in your career. How you handle a disputed or rejected claim can have a direct influence on the outcome. This is why we advise members to seek expert advice early before you wade into difficulties.

When you need insurance claims advocacy:

  • your client has a difficult claim and you want assistance resolving it
  • insurers have turned down a client’s claim and you want to contest it
  • you are not getting anywhere with an insurance claim
  • negotiations are slow and frustrating
  • there is a conflict of interest between your duty to your client and your market

Benefit from:

  • timely, expert advice on claims matters
  • guidance on commercial solutions to insurance problems
  • reduced claims management costs
  • legal and forensic resources
  • preserving business relationships
  • reputation protection
  • expert witness assistance

About Flaxmans – Insurance advocates with 40 years of experience

Flaxmans is a retained adviser to BIBA and are insurance advocates specialising in commercial and business insurance advice. Flaxmans is highly regarded and recognised throughout the industry and their level of service and expertise is reflected in the considerable success rate for our members. Flaxmans skills include insurance law and practice, insurance claims advocacy, claim negotiation, litigation support, mediation and management of distressed business risk.

Flaxmans Chairman Roger Flaxman
ACII, MAE, Chartered Insurance Practitioner, CEDR-accredited Mediator

With more than 40 years’ experience in the insurance industry, Flaxmans Chairman Roger Flaxman, a member of the Academy of Experts and ACII Chartered Insurance Practitioner, has more than a decade’s experience serving as an expert witness in matters of insurance practice, duty of care and insurance market procedure.

“Insurance claims are not just about insurance. They are first and foremost about the business that is insured. Keeping a balance in mind between commercial objectives and legal niceties is a crucial aspect of our advocacy work”. 

For a free initial consultation please contact:  

Flaxmans
International House

2nd Floor

1 St Katharine’s Way

London

E1W 1UN

Tel 0207 710 4150      www.flaxmanpartners.co.uk

 

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BIBA PI Articles https://www.biba.org.uk/publication/biba-pi-articles/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/biba-pi-articles/ PI Matter Articles Articles about PI Initiative Issue1 2013 –  Understand your exposure to Legal liability Issue 3 2012 – Never Presume anything Issue 2

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PI Matter Articles

Articles about PI Initiative

 

 

 

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Links to PI Initiative Providers https://www.biba.org.uk/publication/links-to-pi-initiative-providers/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/links-to-pi-initiative-providers/ BIBA PI Initiative Consultants Flaxman Partners Limited 68 Lombard Street London EC3V 9LJ Tel: 020 7868 2810 Fax: 020 7868 1800 Email: pa@flaxmanpartners.co.uk Website: http://www.flaxmanpartners.co.uk

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BIBA PI Initiative Consultants

Flaxman Partners Limited
68 Lombard Street
London
EC3V 9LJ
Tel: 020 7868 2810
Fax: 020 7868 1800
Email: pa@flaxmanpartners.co.uk
Website: http://www.flaxmanpartners.co.uk

BIBA PI Initiative Premium Finance provider

Premium Credit Limited
Premium Credit House
60 East Street
Epsom
Surrey
KT17 1HB
Tel: 01372 748 833   
Fax: 01372 746 033 
Email: marketing@pcl.co.uk
Website: http://www.premium-credit.co.uk

Accredited Brokers

Howden Insurance Brokers Limited
Bevis Marks House
24 Bevis Marks
London
Ec3A 7JB
Tel: 0 20 7648 7210
Fax: 0 20 7623 3807
Email: biba@howdengroup.com
Website: www.howdengroup.com/biba

Click here to view Howden's profile

Lockton Companies LLP
The St. Botolph Building
138 Houndsditch
London
EC3A 7AG
Tel: 0207 933 2083
Fax: 0207 933 0739
Email: brian.boehmer@uk.lockton.com
Website: www.locktonaffinity.co.uk

Click here to view Lockton's Profile

Towergate Partnership Ltd
The Tower
Deva Centre
Trinity Way
Manchester
M3 7FT
Tel: 0161 831 3222
Fax: 0161 831 3223
E-mail: sarah.lafferty@towergate.co.uk
Website: www.towergateprofessionalindemnity.co.uk

Click here to view Towergate's Profile
 

 

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Enquiries to PI Initiative https://www.biba.org.uk/publication/enquiries-to-pi-initiative/ Tue, 21 Jun 2011 23:00:00 +0000 https://www.biba.org.uk/publication/enquiries-to-pi-initiative/ Enquiries to PI Initiative For further information please contact Graeme Trudgill Executive Director Tel: 020 7397 0218 Email: trudgillg@biba.org.uk  

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Enquiries to PI Initiative

For further information please contact

Graeme Trudgill
Executive Director
Tel: 020 7397 0218
Email: trudgillg@biba.org.uk

 

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Introduction https://www.biba.org.uk/publication/introduction/ Sun, 15 Aug 2010 23:00:00 +0000 https://www.biba.org.uk/publication/introduction/ Introduction “There is no requirement that an insurance policy is reasonably intelligible in terms of content and there is no requirement that it be especially

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Introduction

“There is no requirement that an insurance policy is reasonably intelligible in terms of content and there is no requirement that it be especially legible.”

“ Birds’ Modern Insurance Law”

This statement may appear at first sight to contradict the FSA regulatory position but was of course written before the introduction of FSA regulations or of Contract Certainty.

Nevertheless, I believe there remains an element of truth in the warning. Insurance companies are competing for business and they are free to choose their own style of policy and the words phrases and expressions they utilise to define their offering. These can differ immeasurably and I believe insurance intermediaries should now be aware of the differences and how they could impact the very important protection they expect from the PI policy.

This is the second part of our PI Initiative, which attempts to move the industry to clearer definitions/understanding of the wordings and consider the advantage and disadvantage of a minimum standard. This extensive guide will help members interpret PI policy wordings; I hope you find it useful.

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FSA Regulation https://www.biba.org.uk/publication/fsa-regulation/ Sun, 15 Aug 2010 23:00:00 +0000 https://www.biba.org.uk/publication/fsa-regulation/   FSA Regulation Professional Indemnity Insurance – FSA Rule Requirements The FSA’s requirements for the holding of professional indemnity insurance can be found in Chapter

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FSA Regulation

Professional Indemnity Insurance – FSA Rule Requirements

The FSA’s requirements for the holding of professional indemnity insurance can be found in Chapter 9.2 of the Prudential sourcebook (PRU), part of the FSA’s Handbook of Rules and Guidance.

The requirements of PRU 9.2 can be categorised as follows:

  • The use of a comparable guarantee to disapply the rules;
  • The use of insurers;
  • Terms to be incorporated;
  • Minimum limits of indemnity;
  • Excess;
  • Policies covering more than one firm; and
  • Additional capital.

Comparable guarantees

The rule at PRU 9.2.1 R(3) is disapplied if another authorised firm with net tangible assets of more than £10m provides a comparable guarantee.

If the firm is a member of a group in which there is an authorised entity with net tangible assets of more than £10m, the comparable guarantee must be from that entity.

Insurer(s)

The rule sat PRU 9.2.7 R requires the intermediary to use an insurer authorised to transact professional indemnity insurance in the EEA, or an insurer of equivalent status in a ‘Zone A country’i.e. any country which is a full member of the OECD, or the Channel Islands, Gibraltar, Bermuda or the Isle of Man.

Policy Terms

The rule at PRU 9.2.10 R sets out the required policy terms. These are:

  • cover in respect of claims for which the intermediary may be liable as a result of the conduct of itself, its employees and its appointed representatives;
  • the minimum levels of indemnity as set out elsewhere in the rules;
  • excesses as set out elsewhere in the rules;
  • appropriate cover in respect of legal defence costs;
  • continuous cover in respect of claims arising from work carried out from the date on which the intermediary was granted part 1V permission; and
  • cover in respect of Ombudsman awards made against the firm.

Minimum limits of indemnity

The rules at PRU 9.2.13 and 9.2.14 R require a minimum limit of indemnity of 1 million Euros for a single claim, and the higher of 1.5 million Euros or 10% of the intermediary’s annual income in aggregate.

Where the policy limits are not denominated in Euros, the intermediary must take steps at renewal to ensure the limits are at least equivalent to those required.

Excess

The rules at PRU 9.2.16 to 9.2.18 R set out the maximum levels of excess and these vary depending on whether the intermediary holds client money.

An intermediary not holding client money is permitted an excess of no higher than either £2,500 or 1.5% of annual income (whichever is the higher).

An intermediary who holds client money is permitted an excess of no higher than £5,000 or 3% of annual income (whichever is the higher).

Policies covering more than one firm

The rule at PRU 9.2.19 R requires that where a policy covers more than one firm, the limits must be calculated on the combined income and that each named firm must have the benefit of the minimum limit requirements.

Additional capital

The rule at PRU 9.2.20 R and the tables at PRU 9.2.20 R and 9.2.21 R sets out the additional amount of capital a firm must hold if it seeks to have an excess greater than that stipulated in the rules.

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Assessing The Risk https://www.biba.org.uk/publication/assessing-the-risk/ Sun, 15 Aug 2010 23:00:00 +0000 https://www.biba.org.uk/publication/assessing-the-risk/   Assessing the Risk It is important to appreciate insurer’s considerations when assessing your risk. It will assist you in understanding what is material to

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Assessing the Risk

It is important to appreciate insurer’s considerations when assessing your risk. It will assist you in understanding what is material to an insurer and what needs to be disclosed beyond the questions in the proposal form. Failure to disclose information that insurers investigating the claim deem to have been material is a serious risk.

Insurers consider the proposer’s :-

  • Claims record, including circumstances that came to nothing
  • Commission/Fee income
  • Classes of insurance placed – any specialist services
  • Agencies and binding authorities
  • Experience and qualifications of directors and staff
  • Territories and Jurisdiction outside European Community
  • Size and nature of clients
  • Limit of indemnity
  • Excess
  • Other special information

Proposal form – an important consideration

Proposal forms play a more important part in professional indemnity insurance than in most other classes of insurance. They are required to be completed in full, every year, and they are relied upon absolutely by insurers as a true representation of the material information upon which they offer their terms.

Inconsistency between what is disclosed in the proposal form and what is discovered upon investigation of a claim can result in the policy being voided back to inception. See Part 2 -Proposal Forms for a detailed explanation.

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Professional Indemnity Buyers Checklist https://www.biba.org.uk/publication/professional-indemnity-buyers-checklist/ Sun, 15 Aug 2010 23:00:00 +0000 https://www.biba.org.uk/publication/professional-indemnity-buyers-checklist/   Professional Indemnity Buyer's Checklist Before answering the following Questions do the following:_ Read the Policy Definitions- make a note of key points Read the

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Professional Indemnity Buyer's Checklist

Before answering the following Questions do the following:_

  1. Read the Policy Definitions- make a note of key points
  2. Read the Exclusions – does anything strike you as unacceptable?
  3. Read the Insuring Clause/es – Do they appear to give you the cover you expect?
  4. Read the FSA requirements set out above.- refresh your memory as to what they require of the PI policy.
  5. Now answer the Questions belowin the order that they appear.

Insuring Clauses

  • Is your cover full Civil Liability or Negligent Acts errors and Omissions?
  • Do you understand the difference?
  • Does the insuring clause make sense to you?
  • Does the insuring clause exclude anything?
  • Does the cover you understand you have bought meet the cover your need? (Set out your needs and make a careful comparison).
  • Is the wording clear and unambiguous?
  • Are any restrictions or any requirements included in the clause that you do not understand or are contrary to your expectations and needs?
  • Have you checked the words/ phrases that are Defined and understood them?

Exclusions

  • Do any of the Exclusions remove cover required by FSA?
  • Do any of the Exclusions remove cover for any activities necessary to conduct your CoreBusiness?
  • Do any of the Exclusions remove cover for any activities necessary to conduct your non- CoreBusiness?
  • Does any Exclusion appear to exclude activities that could be deemed a usual part of your Insurance broking business?
  • Have you checked the words/ phrases that are Defined and understood them? Do they make a difference to the answers to the questions above?
  • Do any of the Exclusions transfer the Burden of Proof to you? ( The burden of proving an exclusion applies is normally that of the Insurer)
  1. Now read the General Conditions- take note of any obligations imposed upon the Insured.
  2. Now read the Claims Notification Conditions- take note of the obligations of the Insured.
  3. Now answer the Questions below in the order that they appear

Conditions Generally

  • Do you understand the meaning behind each of the Conditions?
  • Have you made a list of the obligations imposed by the Conditions?
  • Is there a written continuing requirement to notify insurers of material information during the period of the policy?
  • Are there any obligation with which you may not be able to comply?
  • Do the Conditions or any of them state or imply that you have made promises to the Insurer?
  • Do the Conditions or any of them appear to give insurers special rights under the insurance contract?
  • Are there any conditions that appear to change the cover from your expectations and needs?

Claims Conditions

  • What are the time limits concerning notification of _

    • a circumstance
    • of a Claim?
  • Are they reasonable and practicable having regard to the operational and reporting controls in your firm?
  • Do you understand exactly what obligations the claims notification conditions impose on you? – Set them out in summary, writing such that tey could be copied to all staff.
  • Are there any Definitions relating to Claims notification clauses? If so do they affect your understanding of what you must do to comply with the conditions?
  • Are any or all of the claims conditions, “Conditions Precedent”?
  • Do you understand the effect of a Condition Precedent?
  • Does your office/business run in a way that can accommodate the obligations of prompt notification and the requirements of the Policy to comply with the Claims conditions?
  1. Now look at the Clauses that describe the Excess and compare this with what is shown in the policy Schedule.
  1. Now answer the Questions below in the order that they appear

Excess and related clauses

  • Do you understand how and where the Excess is defined in the policy?
  • Do you understand how the Excess operates in practice?
  • Does the policy give you permission to notify only those claims or circumstances that exceed a specified sum?
  • Do Insurers pay the Costs and Expenses incurred in defence of the claim (or do these fall within the excess)?
  • If the Excess is “in the Aggregate” do you have a means of monitoring the erosion of the Excess to know when it has been eroded?
  • Do you understand the definition of “eroded”?
  • If the Excess is expressed as, for example, £50,000 in the aggregate, £5,000 each and every claim, £20,000 in all would you understand how this will operate in practise?
  • Do you understand the meaning of an excess including the phrase Each and Every Claim and/or Claimant?

Schedule

  • Does the schedule:-

    • List all of the names of the firm/company that constitute the Insured (including former trading names) ?
    • Show the correct address/es?
    • Show the correct Limit/s of indemnity
    • State whether costs and expenses are included or in addition?
    • Show the correct level of excess?
    • State whether the excess includes or excludes costs and expenses

 Definitions

  • Do any of the Definitions change your understanding of words or phrases in the Insuring Clause/s?
  • Do any of the Definitions change your understanding of words in the exclusion clauses?
  • Do any of the Definitions change your understanding of words in the Conditions clauses?
  • Do any of the Definitions change your understanding of words in the Schedule?
  • Do any of the Definitions relate to the Claims notification clause? If so do they change your understanding of what you must do to comply with the Claims notification clause?
  1. Now read any Endorsements attached to the policy.
  2. Now answer the Questions below in the order that they appear

Endorsements

  • Does the wording of the endorsement make sense? Do you understand what it is saying?
  • Does the Endorsement remove any cover? If so, did you agree to this?
  • Does the Endorsement add any cover? If so did you agree to this and is there any additional premium to be paid?
  • Does the Endorsement impose any extra conditions upon the Insured?
  • Does the Endorsement change or conflict with any of the obligations that you have under the Poicy?
  • Does the Endorsement create any new Warranties?
  • Are any of the time limits changed by the Endorsement?
  • Do any of the Definitions in the Policy change the meaning of the Endorsement.?

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